Hindustan Powerplus (April 30 1997)
HP has posted net profits of Rs. 136 million (up 39%) for 1996 - 1997
on a sales of Rs. 1952 million (up 51%). This engine manufacturer is a joint venture
between Caterpillar Corpn. & the C.K Birla Group. HP's engines
are mainly used in power generation & compressor rigs. The company has
decided to expand capacity from 1800 to 3800 engines per annum. This expansion is to
be funded by a 1:5 rights at a premium not exceeding Rs. 80 & through borrowings. HP whose product range
has so far been restricted to 900 KVA engines plans to start manufacturing 2000 KVA
engines. The stock is traded at Rs. 81.30 on the NSE (29 Apr.) merits a
second look by long term investors.
TVS Suzuki (2 May 1997)
TVSS plans to invest Rs. 3000 million towards expansion of its
motorcycle manufacturing capacity & setting up a scooter manufacturing plant.
Rs. 1000 million is to be funded by a 15.5% non convertible redeemable secured debenture issue to be privately placed.
TVSS enjoys a high rating of `AA+'. Rs. 500 million is to be funded by term loans & the rest through internal
accruals. TVSS quotes at Rs. 403.45 in the NSE (30 Apr.). We feel
that this counter holds promise for the long term.
MAC Group (2 May 1997)
The restucturing of the MAC Group has resulted in the creation of two entities viz.
South India Corporation (Agencies) Ltd. (SICAL) & MAC Agro Industries.
SICAL is to be modelled on the lines of a holding company. The group plans
to concentrate on its strenghts in logistics, agro business, finance, travel,
leisure, property development & construction. In our opinion, it might take
at least a year for the restructuring to show tangible results.
Disclaimer
Sivan is in no way responsible for investment decisions based on
the information given in this web page.
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